KARACHI: Persons deriving income from national saving schemes are required to pay 17.5 percent in case they are not on the Active Taxpayers List (ATL).
According to new withholding tax rate card for tax year 2019 issued by Federal Board of Revenue (FBR), the highest income withholding tax rate has been set at 17.5 percent in case a person deriving profit on national savings is non-filer of income tax return.
According to Section 151(1)(a) of Income Tax Ordinance, 2001, every person making payment of profit/yield (profit on debt) on account, deposit or a certificate under the National Saving schemes or Post Office savings accounts.
The rate of tax is 10 percent of the gross yield paid in case of filer.
The rate of tax is 10 percent of the gross yield paid up to Rs500,000 in case taxpayer is a non-filer.
The rate of tax is 17.50 of the gross yield paid in case of other non-filers.
The tax shall be paid at the time the yield (profit on debt) is credited to the account of the recipient or is actually paid, whichever is earlier.
The FBR said that this tax is final, except where taxpayer is a company or profit on debt is taxable under section 7B of the ordinance.